The government chose nine items in five fields as new export engines such as new renewable energy and LEDs in the Green Growth Field and game software, e-government, and WiBro in the IT field.
There are five new fields: the green growth sector, the IT sector, the medical industry sector, the agricultural food sector, and the overseas urban development sector.
The government plans to minimize receding exports with financial support. It will try first to occupy 3 percent of the world market share (2.6 percent in 2008), and try to be one of the top ten export countries. It had 2.6 percent of world market share and was rated 12th best export countries in 2008.
For a time, Korean exports have depended on a weak won, but it has stabilized recently. Thus, the government chose these items as new export engines which will lead Korea’s exports after the exchange rate effect is gone.
There are also other plans. The government hopes to become independent in the nuclear power plant technology field in three years, which has been an obstacle to export. It would like to export nuclear power stations to the United Arab Emirates, Jordan, and Turkey. In addition, the government plans to contribute to overseas urban development projects and get US$36 billion worth of orders by 2012.
If these plans work, the amount of Korean exports will be reduced by only about 15 percent from US$422 billion in 2008 to US$356 billion in 2009. If the amount of exports is reduced much more in Russia, England, and Canada - who were the 9th, 10th, and 11th best export nations in 2008 - Korea will be able to enter the top ten. This may be possible because Russia, England, and Canada depend on natural resources for exports, and demand has fallen during the recession. The government predicts that Korea will be US$15~20 billion in black in 2009.
President Lee Myung-bak warned about rashly optimistic forecasts for Korean economy, saying: “Competitiveness is needed not only for companies but also for the government. The support policies will be focused on promising fields, not all around fields for balance.”
